Bloomberg Businessweek ICYMI: US New-Home Sales Exceed Forecast Following Upward Revision
Aug 25, 2025
Katie Hubbard, Executive Vice President of Capital Markets at Walton Global, shares her insights on the U.S. real estate landscape. She discusses the surprising surge in new home sales fueled by lower prices and enticing incentives for buyers. The conversation dives into the increasing interest from institutional investors in residential housing, the impact of rising costs and regulations on builders, and the challenges of NIMBYism in data center development. Hubbard's expert analysis sheds light on the intrigues of the market as it braces for the Federal Reserve's interest rate decision.
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New-Home Sales Gain From Price Cuts
- New single-family home sales topped forecasts as prices eased and incentives pulled buyers off the fence.
- Institutional investors are increasingly buying new homes, moving from ~4% to ~20% of purchases for some builders.
Affordability Tilted Toward New Builds
- Katie Hubbard says new homes are more affordable than existing homes at current prices.
- She highlights strong investor interest and sees long-term value despite high mortgage rates.
Use Land Banking To Boost Builder Scale
- Keep land off builders' balance sheets so they can scale and cycle capital faster.
- Builders should prioritize pace over price and offer incentives to maintain sales velocity.